This House market is exhausting and frustrating

Sunsaru

MobileSaver said:

Sunsaru said:

MobileSaver said:

graeme16 said:

We are on a combined family income of approximately £100K with substantial savings and we are struggling. I cant comprehend how people earning the national average are managing. We are completely failing generations of kids here

The simple fact is that last year (during the biggest crisis in a generation) over a million people did somehow manage it and the majority of those will not have had a combined income of £100k. The same happened the year before that and the year before that etc... most ordinary working people are managing to buy a home and happily live their lives.

@MobileSaver I respect most of your views but thats crossing the line considering you know nothing about circumstances or location.

Fair enough, it wasn't meant to cause offence but re-reading it now I can see it could be taken that way, so now edited.

I'm sure most people will be mystified that someone in that position can be struggling when people on much less are managing fine. For example, is there anywhere in the UK that earnings of £100k won't buy you a house? Obviously you may not be able to buy a mansion on millionaire's row but it's a choice not a struggle if you instead have to live on Acacia Avenue a few miles away.

Depending on circumstances, there are a few I can think of. Earning £100k a year is great but if you have a family of (pulls a number out from somewhere) 6 and you need to stay in a certain area or need a certain house due to schooling or work or even medical reasons then it may be a struggle. That is just a random example and I can guarantee there is more than one person on this island in that position.... or not... or somewhere in between.

lookstraightahead

When you go from gross to net on £100k, add children, debts, bills (likely commuting), living expenses, the mortgage from that salary. 

Then you buy a new car and interest rates go up, you're struggling.

I was there years ago when I was in the south. Usually the higher income goes with higher cost of living (not always depends what you do for a living).

Newnoel

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

grumiofoundation

Newnoel said:

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

Very, very few people need to pay school fees. 

Newnoel

grumiofoundation said:

Newnoel said:

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

Very, very few people need to pay school fees. 

If you want a decent education and the best start for your kids, you do

grumiofoundation

Newnoel said:

grumiofoundation said:

Newnoel said:

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

Very, very few people need to pay school fees. 

If you want a decent education and the best start for your kids, you do

1) That’s still not a need it’s a choice, and to try and keep on topic it’s a choice that will mean you have to buy a cheaper house. 

2) No you don’t. 

RelievedSheff

Newnoel said:

grumiofoundation said:

Newnoel said:

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

Very, very few people need to pay school fees. 

If you want a decent education and the best start for your kids, you do

That just isn't true. Certainly not in the UK.

graeme16

MobileSaver said:

graeme16 said:

We are on a combined family income of approximately £100K with substantial savings and we are struggling. I cant comprehend how people earning the national average are managing. We are completely failing generations of kids here

The simple fact is that last year (during the biggest crisis in a generation) over a million people did somehow manage it and the majority of those will not have had a combined income of £100k. The same happened the year before that and the year before that etc... most ordinary working people are managing to buy a home and happily live their lives.

It's a mystery how you can be struggling on earnings of £100k with substantial savings...

I have zero debt, drive a 6 year old diesel Clio with >100k miles and generally live within my means. I have just sold up in Leeds and looking to move north to 'the golden triangle' due to the quality of state schools being vastly better there than where we were living. Bear in mind these are still not exceptional schools, just what I consider to be a minimum for my children. We have one child and will hopefully have another in the next 12+ months. I essentially need in excess of £400k to buy a very average 3 bed house in this area and if I don't want to be p*****g money down the drain in interest on the mortgage I need at least 20% (£80K) to get the best rate. 

You are correct, on our £100K salary we can just about buy a house in the area, save for retirement, save for our kids future (substantial cost these days) ensure we have an emergency fund, pay all bills, afford some modest annual holidays etc. etc.

However, please tell me how the younger population who are earning average wages are supposed to do that? As I said, current monetary policy is failing generations of kids. I am certainly very worried for the future of my children . . . .

They are 'managing' by taking on monstrous amounts of debt in the form of 40 year mortgages. The majority wont even understand how much extra interest they are paying when compared to taking out a 25 year mortgage. If only we taught financial literacy in school . . . . 

MobileSaver

lookstraightahead said:

add children, debts, bills (likely commuting), living expenses,

Then you buy a new car and interest rates go up, you're struggling.

Newnoel said:

£100k isnt a lot if you have 2+ kids and need to pay school fees, etc.

Thank you both for confirming exactly the point I was making; those are choices not struggles.

RelievedSheff

graeme16 said:

MobileSaver said:

graeme16 said:

We are on a combined family income of approximately £100K with substantial savings and we are struggling. I cant comprehend how people earning the national average are managing. We are completely failing generations of kids here

The simple fact is that last year (during the biggest crisis in a generation) over a million people did somehow manage it and the majority of those will not have had a combined income of £100k. The same happened the year before that and the year before that etc... most ordinary working people are managing to buy a home and happily live their lives.

It's a mystery how you can be struggling on earnings of £100k with substantial savings...

I have zero debt, drive a 6 year old diesel Clio with >100k miles and generally live within my means. I have just sold up in Leeds and looking to move north to 'the golden triangle' due to the quality of state schools being vastly better there than where we were living. Bear in mind these are still not exceptional schools, just what I consider to be a minimum for my children. We have one child and will hopefully have another in the next 12+ months. I essentially need in excess of £400k to buy a very average 3 bed house in this area and if I don't want to be p*****g money down the drain in interest on the mortgage I need at least 20% (£80K) to get the best rate. 

You are correct, on our £100K salary we can just about buy a house in the area, save for retirement, save for our kids future (substantial cost these days) ensure we have an emergency fund, pay all bills, afford some modest annual holidays etc. etc.

However, please tell me how the younger population who are earning average wages are supposed to do that? As I said, current monetary policy is failing generations of kids. I am certainly very worried for the future of my children . . . .

They are 'managing' by taking on monstrous amounts of debt in the form of 40 year mortgages. The majority wont even understand how much extra interest they are paying when compared to taking out a 25 year mortgage. If only we taught financial literacy in school . . . . 

They buy in cheaper areas and then as and when finances improve they move to a better area and then a better area after that. Much the same as people have always done.